International Project Finance Association (IPFA): Roads PPPs Taking Shape Across East Africa

Author:Mr Tom Gray and Shane Wilson
Profession:Gowling WLG

Last week, representatives from the Uganda National Roads Authority (UNRA), the Kenyan National Roads Authority (KeNHA) and the Kenyan PPP Unit gathered in Nairobi to attend the "International Project Finance Association (IPFA): Roads PPPs Taking Shape across East Africa" briefing.

Co-hosted by Gowling WLG and KMPG, and attended by delegates from various public sector bodies, international and regional developers and banks, DFIs, investors, and advisory firms, the event provided UNRA and KeNHA with the opportunity to update the attendees on the progress of the Kampala - Jinja expressway and the Kenyan roads PPP programme. It also gave the audience the chance to question a panel featuring representatives from the roads authorities, the Kenyan PPP Unit, Gowling WLG and Nedbank on various technical, financial and legal issues critical to the projects' success.

The event was opened by Andrew Jackson (Head of Advisory, KMPG East Africa), with keynote addresses from Eng. Patrick Muleme (Head of Design, UNRA), Eng. George Kiiru (Head of PPP Section, KeNHA) and Eng. Stanley Kamua (Director Kenyan PPP Unit). Patrick, George and Stanley were later joined for a panel discussion by Daniel Odongo (Regional Coverage, Nedbank) and Tom Gray (Projects and Construction, Gowling WLG), chaired by James Woodward (Head of Infrastructure Hub, KPMG East Africa).

Eng. Muleme spoke about the Kampala - Jinja expressway project, Eng. Kiiru gave an update on the Nairobi - Nakuru - Mau Summit PPP and the other roads projects yet to be launched in Kenya (including Thika road, the Nairobi - Mombasa road, the second Nyali Bridge, and the concession for all tolling operations) and Eng. Stanley discussed the role of the Kenyan PPP Unit in the management of PPPs in Kenya.

In addition, the panel debate covered various issues such as the successes and lessons learnt from the procurements to date, the impact of regional elections, the form and strength of the government guarantee/letter of support intended to be issued to concessionaires, and land acquisition issues pertinent to linear transport projects, topics which our experts have written about previously (see our guidance on Kenya's burgeoning roads sector, and also how to go about constructing roads in Kenya), as well as taking questions from the audience.

The event was attended by 120 delegates, supported by the East African Branch of the International Project Finance Association and co-sponsored by Gowling WLG and KMPG. It was held...

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